Chevron’s LNG production in Australia may face interruptions as a recent worker vote approved union-led industrial action if required.
The Gorgon and Wheatstone facilities in Western Australia and projects by Woodside Energy Group in the vicinity contribute to a tenth of the global LNG supply, with Australia leading as its top exporter. Monday saw 37 employees from the Wheatstone offshore platform support the possibility of industrial action, echoing colleagues’ sentiments from another Wheatstone unit and the Gorgon site.
The Offshore Alliance (OA) – a partnership between the Maritime Union of Australia and the Australian Workers’ Union – has been granted the right, though not the commitment, to initiate industrial actions, which could vary from 30-minute work halts to 12-hour stoppages.
The union coalition stated on Facebook, “All 500 OA members on the 3 Chevron sites support PIA… We’ll soon be submitting PIA notices.” PIA refers to protected industrial action.
Before implementing any such action, the unions must inform Chevron a week in advance.
Last week, 99% of around 450 workers from Chevron’s Gorgon LNG site and Wheatstone’s processing facility voted in favour of potential union-led strikes. Chevron acknowledged the outcome and emphasized ongoing negotiations, aiming for resolutions benefiting both parties.
Chevron also indicated on Monday that they would implement strategies to ensure consistent supply.
This possible industrial unrest has slightly boosted LNG prices. Saul Kavonic, an energy analyst, mentioned that while Chevron might experience minor disruptions, significant supply shortages are improbable.
This issue with Chevron follows a resolved dispute at Woodside’s North West Shelf LNG facility in Western Australia, where workers had approved strike action but eventually reached an agreement with the firm.
